Notices to Members

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Notice I-20-13

March 18, 2020

Coronavirus (COVID-19) Update—Regulatory Relief

On March 17, 2020, the CFTC issued separate no-action relief letters to futures commission merchants (FCM) and introducing brokers (IB), swap dealers (SD) and forex dealer members (FDM) that are designed to facilitate the separation of personnel in response to the COVID-19 pandemic. As discussed below, NFA is issuing similar relief from NFA requirements for Members that are in compliance with the terms of the CFTC's no-action relief. Additionally, NFA is providing FDMs with relief from the filing deadline for Chief Compliance Officer (CCO) Annual Reports.

FCM and IB Recordkeeping Requirements under NFA Compliance Rule 2-10

NFA Compliance Rule 2-10 requires FCM and IB Members to comply with the applicable recordkeeping requirements in CFTC Regulation 1.35, including those relating to timestamping and recording oral communications. Similarly, NFA Compliance Rule 2-26 requires FCMs to comply with the timestamp recordkeeping requirements of CFTC Regulation 155.3. NFA also requires FCMs for which NFA is the DSRO to provide NFA with a copy of the CCO Annual Report in accordance with CFTC Regulation 3.3. FCM and IB Members that are in compliance with the terms of the CFTC's no-action relief in each of these areas, for the time period provided in the relief, will be deemed to be in compliance with NFA's related requirements.

SD Requirements under NFA Compliance Rule 2-49

NFA Compliance Rule 2-49 requires SD Members to comply with the recordkeeping requirements of CFTC Regulation 23.202, including those relating to timestamping and recording oral communications. NFA Compliance Rule 2-49 also requires SD Members to file a copy of its CCO Annual Report with NFA in accordance with CFTC Regulation 3.3. SD Members that are in compliance with the terms of the CFTC's no-action relief in each of these areas, for the time period provided in the relief, will be deemed to be in compliance with NFA's related requirements.

FDM Requirements under NFA Compliance Rules 2-10 and 2-36

NFA Compliance Rule 2-10 requires FDMs to comply with the applicable recordkeeping requirements in CFTC Regulation 1.35, including those relating to timestamping and recording oral communications. Similarly, NFA Compliance Rule 2-36 requires FDMs to comply with the timestamp recordkeeping requirements of CFTC Regulation 5.18. FDMs that are in compliance with the terms of the CFTC's no-action relief in each of these areas, for the time period provided in the relief, will be deemed to be in compliance with NFA's related requirements.

NFA Compliance Rule 2-36 requires FDMs to prepare a CCO Annual Report that meets the requirements of CFTC Regulation 3.3 and submit it to NFA within 90 days after the end of the FDM's fiscal year. For CCO Annual Reports due between March 31, 2020 and September 1, 2020, NFA is extending the due date for 30 calendar days from the date on which the Report would have been required to be filed with NFA.

If you have any questions on this Notice, please contact Valerie O'Malley, Director, Futures Compliance (vomalley@nfa.futures.org or 312-781-1290) or Joe Zangri, Managing Director, OTC Derivatives (jzangri@nfa.futures.org or 212-346-5632).

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